Econ NINJA QUIZ 2

2 Ninja QUIZ

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Question 1

In a command economy where society values equity and equality, which role would the government be most likely to fill?

one in which there is no opportunity cost

one in which benefits are greater than costs

one in which benefits are unknown, but costs are low

Question 2

Which of the following is most likely to increase a country’s future standard of living?

Investments in military strength

Increased opportunity costs

Investments in training, education, and healthcare

Question 3

Standard of living is best defined as

How productive a person is

A person’s access to material goods and services

The total value of all goods and services created in a country

Question 4

Which of the following is a strength of a market economy?

Guaranteed equity

Lots of government regulations to ensure that no one has too little or too much

Individual freedom

Question 5

In Cuba, a lottery system effectively decides who gets to have a car. Why would someone favor a lottery system over a price system in obtaining a desired item, such as cars?

Everyone has a chance to purchase the car since everyone can work for one.

Everyone eventually stops working to qualify for goods and services under the lottery system

Everyone has an equal chance of having their name drawn instead of only those with the most money

Question 6

In which market structure does a firm have greatest control over its product’s price?

monopoly

oligopoly

monopolistic competition

Question 7

When the U.S. government purchases a submarine from a company, the government has made a major transaction in the

factor market

public market

product market

Question 8

With respect to raising funds, the primary difference between corporations and other business forms is that corporations

Can sell shares of a company to the public

Always have collateral but other businesses do not

Are the only businesses who can obtain loans from banks

Question 9

Which of the following statements is true regarding households, businesses, and government in the U.S. economic system?

The three are economically connected and dependent on one another

Government regulates what businesses can produce, but not what consumers can buy

Households act as consumers while government and businesses only act as producers

Question 10

Households pay firms for goods and services. Firms supply households with goods and services. The purchase and supply of goods and services takes place in the

factor market

product market

traditional market

Question 11

Which of the following could be true of businesses that have unlimited liability?

Corporations are taxed at a higher rate

Financial responsibility is limited

Owners can lose personal property

Question 12

In which type of business model is the business legally recognized as its own entity, separate from its owners?

sole propriatorship

Corporation

Partnership

Question 13

In what type of market might several dominant businesses be able to work together to set prices or control output?

Monopoly

monopolistic competition

Oligopoly

Question 14

Which situation would cause the supply curve for wheat to shift to the right?

New fertilizers increase wheat crop harvests.

Firms exit the wheat industry.

Drought reduces industry output by 25%.

Question 15

Dana’s company has produced a large number of pink rubber shoes. However, the demand for pink rubber shoes in the marketplace is drastically less than the current quantity supplied. Which of the following situations does Dana find herself in?

She needs to raise prices to make up the difference between supply and demand

She needs to cut prices because she is experiencing a surplus

She needs to raise prices because she is experiencing a surplus

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